The role of this glossary is to present brief definitions of most of the key concepts in economics and finance (in total 1064 names-definitions) as well as security markets (financial, capital, money) with aim the reader to be able to understand and become familiar with the terminology in the analyses that will present in the category economics.
Additionally, we hope that the reader by acquiring intimacy with the economic terminology, he will also love the science/art of economics, giving to it a significant part of his personal time.
In the following glossary we tried to include the most well-known definitions and terms in the field of Economics & Finance. If you still find that a term or definition is missing and you know that it can be included in this glossary, please do not hesitate to contact us via the contact form of our web-site (Contact Us) and the Liberal Globe will edit it and will include it.
Glossary Economics & Finance
There are currently 46 names in this directory beginning with the letter T.
T-account
is named a simplified balance sheet in the form of a T that lists only the changes that occur in balance sheet items starting from some initial balance sheet position.
Tax distortions
are effects on real behavior which arise from the wedge that taxes introduce between the price received by the provider of a good or service and the price paid by its consumer.
Tax smoothing
involves the proposition that a government should not change tax rates on response to temporary causes of budget deficits but should borrow instead.
Taxable municipal bond
is named that municipal bond whose income is fully taxable by the federal government.
Technical analysis
is named a type of security analysis which attempts to forecast the movement in the prices of securities based primarily on historical price and volume trends in those securities.
Technological progress
is named the contribution to economic growth of technological change. It is usually captured by the rate of increase of total factor productivity.
Tender offer
is named a type of corporate takeover in which a firm or individual offer to buy some or all the shares of a target firm at a stated price. This offer is publicly advertised and material describing the bid is mailed to the target's stockholders.
Term structure of interest rates
is named the relationship among interest rates on bonds with different terms to maturity.
Terminal wealth
is named the value of an investor's portfolio at the end of a holding period. In other words, it is the investor's wealth multiplied times one plus the rate of return earned on the investor's portfolio over the holding period.
Terms of trade
is named the ratio between the price of exportable and the price of imports; it measures how many foreign goods can be purchased with one unit of domestic output.
Theory of asset demand
is named the theory that the quantity demanded of an asset is usually A. positively related o wealth. B. positively related to its expected returns. C. positively related to its liquidity relative to alternative assets. D. negatively related to the risk of its return relative to alternative assets.
Third market
is named a secondary security market where exchange listed securities are traded over the counter.
Threshold loss function
is named a loss function taking the value 0 if the error is less than some critical or threshold level, and a constant value if the error is greater than or equal to this critical level. Its seizures losses of a dichotomous nature, such as death resulting from an overdose.
Time inconsistency
is named the condition in which characterizes policies that although optimal today they will become less desirable at a later stage especially after agents have adjusted their behavior accordingly.
Time-weighted return
is named a method of measuring the performance of a portfolio over a period. It is the cumulative compounded rate of return of the portfolio and it is estimated on each date that a cash flow moves into or out of the portfolio over the performance measurement period.
Timing
is called a feature of security analysis which involves forecasting the price movements of asset classes relative to one another.
Tobin's q
is named the ratio of the present value of the return from new investment to the cost of installed capital. It can be approached by the ratio of share prices to the price of new equipment.
Top down forecasting
is named a type of sequential approach to security analysis which requires first making forecasts for the economy, then for industries and finally for individual companies. Each level of forecasts is conditional on the previous level of forecasts made.
Total factor productivity
is named the productivity in the production process that is attributable not to any factor of production, but to all. Growth in total factor productivity is often measured as a weighted average of growth in average productivities of all factors of production.
Tradable goods
are named all those goods that are traded or is going to be traded with foreign countries.
Trade union voluntary/involuntary unemployment
is named the unemployment resulting from the fact that trade unions ask for higher real wages than if the market were perfectly competitive, which may be involuntary from the perspective of individuals.
Trade unions
are organizations of workers which are formed for the determination of taking collective action against their employers with aim to obtain wage improvements and better working conditions.
Trading post
is named the physical location on the floor of an organized exchange where a specialist in a stock is located and where all orders involving the stock must be taken for execution.
Transfer agent
is a designated agent of a corporation, usually a bank, which administers the transaction of shares of a corporation's stock between old and new stockholders.
Transfers
are named all those direct payments which are made by the government to individuals or firms and are not related to the provision of goods and services, e.g. subsidies, unemployment benefits, pensions.
Transmission mechanisms of monetary policy
are all those channels through which the money supply affects economic activity.
Treasury bill (T-bill)
is named a security issued by the US Treasury with a term-to-maturity of over seven years. Interest is paid semiannually and principal at maturity.
Treasury Bond
is named a security issued by the US Treasury with a term-to-maturity between one and seven years. Interest is paid semiannually and principal at maturity.
Treasury Note
is named a security issued by the US Treasury with a term-to-maturity between one and seven years. Interest is paid semiannually and principal at maturity.
Treasury stock
is named a common stock which has been issued by a corporation and then later purchased by the corporation in the open market or through a tender offer. This stock does not include voting rights or rights to receive dividends and is equivalent economically to unissued stock.
Triple witching hour
is named the date when options on individual stocks and market indices as well as futures on market indices and options on market index futures expire simultaneously.
Truncated squared error loss
is named a loss function equal to the squared error but with a maximum loss for any observation. It is used as a means of handling outliers.
